The global building & road construction equipment market is expected to grow from $37.65 billion in 2020 to $41.67 billion in 2021 at a compound annual growth rate (CAGR) of 10.7%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $57.88 billion in 2025 at a CAGR of 8.6%.
The building and road construction equipment market covered in this report is segmented by product type into motor graders, road roller, wheel loaders, concrete mixer, bulldozers, others, by application into building construction, road construction.
Infrastructure development in emerging and developed countries propelled the building and road construction equipment market. Emerging and developed countries’ governments and private sector are focusing on developing the infrastructure to keep up the GDP, meet the growing population needs, meet the levels of urbanization, and to increase connectivity by developing highways and express ways. For instance, the total Indian investment in road construction was worth $22.4 billion in 2018-19 with private investment accounting for 14% of the total investments. Furthermore, according to the World Bank, the private sector infrastructure investment commitments for various sectors amounted to $96.7 billion in 2019 globally. The private participation infrastructure (PPI) investment in H1 was valued at $49.8 billion in 2019, 14% higher from H1 levels in 2018. Governments and private sectors of developed and emerging sectors focus on infrastructure developments and require high-tech equipment for the construction process to make it easy and less time consuming that furthers acts as a major driver for the building and road construction equipment market’s growth.
The high cost of equipment and initial setup is expected to hinder the building and road construction equipment market. The cost of equipment consists of the purchase price, sales tax, shipping cost, installation cost, and financing charges at the time of acquisition of the equipment. A new full-size excavator can cost between $100,000 and $500,000, where companies are required to make high investments, as the purchase also involve additional costs, adding to the financial burden on companies and hindering the construction and road construction equipment market.
The manufacturing companies in building and road construction equipment are concentrating on upgrading their technologies. The technology advancements aim to increase safety, productivity, connectivity of equipment, and decrease maintenance issues and costs. For instance, in March 2020, Komatsu, a Japan-based construction equipment manufacturer introduced hydraulic excavators*1 equipped with the KomVision Human Detection and Collision Mitigation System of the company. The excavators are designed by advancing the ‘KomVision’ bird-view camera system equipped with conventional models in the Japanese market. The system identifies humans across the excavator and avoids the excavator from moving when the system detects people whenever the excavator starts to travel or swing. In October 2020, Volvo Construction Equipment, a USA-based manufacturer of construction equipment launched Volvo Active Control, an automated grading machine control system available on excavators EC250E, EC220E, and EC300E across North America. This system allows the operators to conveniently get the right depth and angle, reducing grading times by up to 45%.
In March 2020, K-Tec Earthmovers Inc. (K-Tec), a Canadian company that manufactures efficient earthmoving scrapers for construction and mining sites merged with Ashland Industries (Ashland), a USA-based manufacturer of earthmoving equipment for the agricultural, industrial, and construction sectors. The merger is expected to allow both companies to offer an extensive product line of earthmoving scrapers in the industry. The combination also expects to provide shorter lead times for customers and accelerated product design and launch.
The major players covered in the global building and road construction equipment market are AB Volvo, Caterpillar Inc., Komatsu Ltd., Liebherr Group, Hitachi Construction Machinery Co. Ltd., J.C. Bamford Excavators Ltd., Terex Corporation, The Atlas Copco Group, Deere & Company, Sany Group, Wacker Neuson, CNH Industrial NV.
The countries covered in the global building and road construction equipment market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The regions covered in the global building and road construction equipment market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The global building and road construction equipment market is segmented –
1) By Product Type: Motor Graders, Road Roller, Wheel Loaders, Concrete Mixer, Bulldozers, Others
2) By Application: Building Construction, Road Construction
3) By Equipment Category: Earthmoving Equipment, Material-Handling Equipment, Heavy Construction Vehicles, Other Equipment
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